The efficiency of your warehouse should be the top priority for any company that has the warehouse. Your warehouse is at the center of your business and if it isn’t able to perform as it should it’s going to be felt throughout your company. To make the most in your store, it is important to know some of the most effective methods of managing your warehouse strategies for inventory management.
Here are some tips and methods you can apply to increase the efficiency of your warehouse. Let’s have a look!
The importance of a successful Inventory Management
Before we go into the strategies you could apply, it’s essential to know how vital efficient managing inventory is. In the beginning, warehouses are getting bigger and housing more items as never before. According to a study the typical dimension of the warehouse has increased to 180,000 square feet up by 127,000 square feet fifteen years back. Additionally, SKU proliferation is a problem in many warehouses, making managing the warehouse more difficult.
Another reason why effective inventory management is crucial is that it directly affects your customers. If you’re not tracking things properly, your site might show that there’s things in stock but it’s not. In reality, on average, inventory in retail is only accurate around 63 percent of the times. In addition, if your warehouse isn’t efficient it is more likely to miss orders. Or hold up shipping things out, Both of which may affect the customer experience negatively.
In simple terms, without warehouse efficiency, your goods are likely to arrive at a slower pace. Also you’ll have to order more items than you’ll need and you’ll reduce the customer experience, and take up valuable time your employees.
Make the Most of Your Space
The first option you should consider is maximising your space. Moving to a bigger warehouse is typically impossible or expensive. It is better to make more use your space currently have. In order to do this, you’ll need discover ways to store things vertically, making use of as much space as is possible.
As an example, you can build shelves all over the warehouse, and then utilize forklifts and ladders to access the items you require. The things that previously used up a lot of floor space are now just a tiny fraction.
Take advantage of Technology
One of the most important things to do is to improve the efficiency of your warehouse. Making sure you have the proper technology in place is essential in order for you to work more effectively. A few of the technological advances to consider include:
- Instead of picking out by hand the required items, it is possible to use technology (Pudo) to accomplish this. Robotic pickers cut down on the amount of errors and improve the efficiency in your storage facility.
- A well-designed WMS will be able to perform a range of essential tasks including data analysis, report creation and tracking inventory. If you’re operating a massive warehouse, you must have an efficient WMS.
- Autonomous Guided Vehicles like self-driving automobiles but specifically for warehouses automated controlled vehicles (AGVs) could significantly increase the efficiency that your store operates. Utilizing onboard computers rather than operating a driver, these vehicles can move from one area in your warehouse to next without the need for a human.
Set an a Par Level
Par level refers to the minimum amount that you require of a particular product to meet your orders. If your inventory falls below that par level and you realize that you need to purchase more. Making a par-level calculation for every product can help you avoid ordering too many items or running low on items all the time. Each product must have its own par level , and it is recommended to review them each month to ensure they’re still in good shape.
Setting a par-level is referred to as a smart allocation strategy. In this report by Apparel Magic, large businesses can improve their alignment of supply chains to the global market by optimizing their inventory management allocation. effective strategies to allocate stock helps companies avoid having too much (or not enough) in their online and in-store stores.
First In/First Out
First in, First-out (FIFO) is the well-known warehouse method. The first items you introduce into your warehouse should be the ones that you offer to your customers. This is crucial when working with perishable goods, however it’s applicable for any type of warehouse.
This is due to the fact that, even though your products are unlikely to expire. As long as they stays in your warehouse, the longer packaging must fall apart. It is important to ensure that your warehouse is setup in a manner that you are aware of which items have been in the warehouse for the longest. And are able to easily access them.
The Future Forecast
In the end, it is important to think about the future. The business you run is constantly evolving and your warehouse needs to adapt too. The things you need to be thinking about are:
- How can your company grow in the coming months?
- Do you require an additional storage space?
- Which items will be most well-loved in the next few months?
- Which of the following products will be most popular in the coming few months?
- My workforce is likely to shrink or expanding in the in the near time?
You might not be able to forecast the future however, you can definitely make plans for it. There are tools for forecasting available to assist you in answering certain of the above questions to ensure that you’re well-prepared for what might be ahead.
Warehousing forms an essential Foundation of Your Business
If you’re managing the warehouse of your business it’s essential to discover ways to improve it. You’re able to devote all the time you’d like on the other aspects of your business, but it doesn’t really matter If your warehouse isn’t kept operating in a good way.
Take a look at your current operations and search at areas where you can improve your performance. Use one of the strategies of inventory management described above to optimize your warehouse. Soon you’ll notice the benefits being spread across the entire company.